FORMER Cabinet minister Peter Mandelson set out details of his vision for regional government in the North-East yesterday.

The Hartlepool MP used a speech in his constituency to call for a referendum on setting up an assembly early in the next Parliament if Labour wins the General Election.

Mr Mandelson said the new authority should be split between elected politicians and appointed representatives from business, trade unions and education.

He said the assembly would help the region achieve greater economic success and help close the gap with more prosperous areas of the country.

But CBI North-East assistant regional director Angus Hynd said business was lukewarm about the prospect of a regional parliament.

He said: "The majority of our members don't believe that real and long-lasting benefits would result, although that is not to say we could not be convinced."